European directive on wage transparency: a step towards equality

What does it mean for you as an employer?

One of the key provisions of the directive is the obligation for employers to provide information to their employees about salary levels and compensation criteria. This means that employees have the right to know how their salary compares to that of their colleagues in similar positions. In case of a complaint, it is the employer who must prove the fairness of their wage strategy. In Belgium, companies with 50 or more employees are already required to prepare a wage gap report. For companies with 150 or more employees, the reporting obligation will become even more extensive due to the European directive.

And what about smaller companies?

Smaller companies are spared from reporting requirements, but they should still bring some order to their salary structure. After all, we find that employees in small companies often discuss salaries with each other, both inside and outside the company. Having a clear line and structure in your remuneration demonstrates strong employership. It is also useful for new hires and can save you a lot of discussion.

Vandelanotte assists both small and large companies in creating structured, market-competitive salaries tailored to your business. For more information, contact Tom Deloose at tom.deloose@vdl.be.